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OCBC Debt Consolidation Plan Review: Should You Apply?

OCBC's debt consolidation loans charge higher than average interest rates.

OCBC Debt Consolidation Plan Review: Should You Apply?

OCBC's debt consolidation loans charge higher than average interest rates.


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Interest Rates
Processing Fee


  • Alternative debt consolidation loans for individuals denied from other banks


  • Not the most competitive interest rates

OCBC charges higher than average interest rates for its debt consolidation loans. For this reason, borrowers seeking to manage their personal debt should research the offerings of other lenders before considering OCBC's Debt Consolidation plan.

Summary of OCBC's Debt Consolidation Loans
Higher than average interest rates: 8.06% - 8.41% EIR
Loan tenure: 3 - 8 years
No Processing Fee

Table of Contents

What Makes OCBC's Debt Consolidation Plans Stand Out to Borrowers

OCBC's debt consolidation loans charge slightly higher interest rates compared to those of other lenders in Singapore. For this reason, the bank's product is not the most affordable. For example, while OCBC charges a flat interest rate of 4.5% and effective rates ranging from 8.06-8.41% the cheapest debt consolidations cost less at about 6.50% EIR.

Minimum Effective Interest Rates of Debt Consolidation Plans by Bank

On the other hand, individuals who are unable to obtain the most affordable debt consolidation loan offers could consider applying for OCBC's Debt Consolidation Plan as a backup option. Unlike its competitors, OCBC does not charge a processing fee and it does not list rates "from X%", which suggests that its rates are more transparent and accessible. Another drawback of OCBC's debt consolidation loans is that they are only offered for tenures of 3 to 8 years, which is restrictive for individuals that would prefer a longer or shorter term debt consolidation plan.

Loan TenureFlat RateEffective Rate
36 months4.5%8.41%
48 months4.5%8.36%
60 months4.5%8.29%
72 months4.5%8.22%
84 months4.5%8.14%
96 months4.5%8.06%

Who Can Apply: Eligibility Criteria

Consider this if you are unable to secure a debt consolidation loan from another bank in Singapore
  • Balance to Income Ratio
    • More than 12x monthly income
    • Early Repayment Fee
      • 5% on outstanding loan amount
      • Late Payment Fee
        • S$200
        • Processing Fee
          • N/A

          OCBC offers its debt consolidation loans to Singaporeans and Permanent Residents who are at least 21 years old. Additionally, successful loan applicants must earn between S$30,000 and S$120,000 and have balance to income (BTI) ratios of at least 12 times their monthly income.

          Other Charges and Fees

          Unlike other lenders in Singapore, OCBC does not charge a processing fee for its debt consolidation loans. However, it does charge new debt consolidation customers 5% on top of their total loan repayment, which effectively acts as a large processing fee for these customers. The bank also charges fees for early loan settlement and late repayments. However, we strongly suggest that borrowers plan their repayment carefully in order to avoid these unnecessary fees as they can drive up the total cost of the loan.

          Processing FeeN/A
          Early Settlement Fee5% of outstanding loan amount
          Late Repayment FeeS$200
          Over the Counter Payment/DepositS$25

          How to Apply: Application Process

          Individuals that decide to apply for OCBC's Debt Consolidation Loan Plan must complete an online application and provide documentation proving their identity, income and current outstanding debt. In terms of income documentation, applicants are required to submit either their latest computerised payslip and Income Tax Notice of Assessment or their latest 6 months CPF contribution history statement.

          • Photocopy NRIC (front & back)
          • Latest Credit Bureau Report
          • Income documentation
          • Latest debt balance statements with outstanding balances

          Read Also:

          Stephen Lee

          Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.

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